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Objectives of Information
System The Information System: An Accountants Perspective
Support

the stewardship function

Stewardship: Resource

management of resources utilization

Management decision making Firms day to day operations

Efficient

and effective performance

Acquisition of IS
System Commercial

Organizational Structure
Business

Development Life Cycle Software:

segments

Turnkey systems: completely finished and tested systems Backbone systems: basic system structure Vendor-supported system: customized systems; tailor fit to the entitys information needs

Geographic Location Product Line Business Function

The Accounting Function

Manages the

firm

financial information resource of the

Centralized Data Processing

All

Captures and records the financial effects of transactions Distributes transaction information

Value

of information = RELIABILITY

Summarization Timeliness Accuracy: free from material errors Relevance: serve a purpose Completeness

data processing is performed by one or more large computers at a central site which serve all users

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Distributed Data Processing (DDP)

Reorganizing

Disadvantages of DDP
Mismanagement

the IT Function into small information processing units (IPUs) which are distributed to end users and placed under their control

of organization wide resources Hardware and software incompatibility Redundant tasks Consolidating incompatible activities Hiring qualified professionals Lack of standards

Advantages of DDP
Cost

Evolution of Information System Models

I. II. III. IV.
I.
I.

reduction

Data can be entered and edited at the IPU Reduced application complexity

Improved

cost control responsibility Improved user satisfaction Backup

Manual Process Model Flat File Model Database Model Relational Database Model
Resources, Events, and Agents (REA) Model
Enterprise Resource Planning (ERP) Systems

Flat File Model

Legacy

Database Model
Centralizes

systems: large mainframe systems Individual data files are not related to other files

the organizations data into a common database that is shared by other users All users have access to the data that they need Advantages:

Elimination of data redundancy Single update Current values

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Database Model

REA Model
Modeling an

organizations:

Resources Events Agents

User

views can be constructed which meet the needs of all users Multiple views Emphasizes EVENTS rather than accounts ERP System: automate and integrate key business processes